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Comfort Intech Ltd.

BSE: 531216 Sector: Financials
NSE: N.A. ISIN Code: INE819A01031
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NSE 05:30 | 01 Jan Comfort Intech Ltd
OPEN 6.21
PREVIOUS CLOSE 6.21
VOLUME 1225
52-Week high 12.15
52-Week low 0.83
P/E
Mkt Cap.(Rs cr) 20
Buy Price 6.21
Buy Qty 50.00
Sell Price 6.35
Sell Qty 100.00
OPEN 6.21
CLOSE 6.21
VOLUME 1225
52-Week high 12.15
52-Week low 0.83
P/E
Mkt Cap.(Rs cr) 20
Buy Price 6.21
Buy Qty 50.00
Sell Price 6.35
Sell Qty 100.00

Comfort Intech Ltd. (COMFORTINTECH) - Auditors Report

Company auditors report

To

The Members

Comfort Intech Limited.

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of ComfortIntech Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive income) thestatement of Cash Flows and the Statement of changes in equity for the year then endedand a summary of the significant accounting policies and other explanatory information(hereinafter referred to as "standalone Ind AS financial statements")

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act Companies (Indian Accounting Standards) Rules 2015 asamended. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Basis for Qualified Opinion

The Company has not provided for defined benefit obligation in the nature of gratuitybased on the requirement of Ind AS 19 i.e. "Employee Benefit" which requiresdefined benefit obligation to be recognised based on actuarial valuation basis. In absenceof valuation we are unable to quantify the impact of above on the net profit for the yearand liabilities as on reporting date.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effect of the matter described in the basis ofqualified opinion paragraph the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Other Matters

The comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2016included in these standalone Ind AS financial statements are based on the previouslyissued statutory financial statements prepared in accordance with the Companies(Accounting Standards) Rules 2006 audited by the predecessor auditor whose report for theyear ended 31st March 2017 and 31st March 2016 dated 20thMay 2017 and 30th May 2016 respectively expressed an unmodified opinion onthose standalone financial statements as adjusted for the differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus.

Our opinion on the standalone Ind AS financial statements and our report on Other Legaland Regulatory Requirements below is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of the section 143 of the Companies Act2013 we give in Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the statement of Cash Flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act Companies (IndianAccounting Standards) Rules 2015 as amended.

e) In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the company

f) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164 (2) of the Act.

g) Report on the Internal Financial Controls under Clause (1) of Sub-section 3 ofSection 143 of the Companies Act 2013("the Act") is enclosed as Annexure B tothis report.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialstatements. Refer Note 28 to financial statements.

ii. According to the information and explanation given to us the company does notforesee any material losses for which provision is required under the applicable law oraccounting standards on long- term contracts including derivative contracts.

iii. According to the information and explanation given to us the Company is notrequired to transfer any amount to Investor Education and Protection Fund.

For A. R. Sodha & Co.

Chartered Accountants

FRN 110324W

A. R. Sodha

Partner

M. No.031878

Place : Mumbai

Date : 30th May 2018

ANNEXURE A TO AUDITORS'S REPORT

On the basis of such checks as we considered appropriate and in terms of informationand explanations given to us we state that:

1. a. The Company has generally maintained proper records of fixed assets showing fullparticulars including quantitative details and situation of fixed assets.

b. According to information given to us fixed assets have been physically verified bythe management at reasonable intervals and no material discrepancy was noticed on suchverification.

c. According to the information and explanation given to us and on the basis of recordsfurnished before to us the title deeds/ownership documents of the immovable propertiesare held in the name of the company.

2. a. The stock in trade of shares and securities held in the physical format has beenphysically verified and those held in dematerialized format have been verified from therelevant statements received from the depositories during the year by the management.Inventories of finished goods have been physically verified by the management atreasonable intervals.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of shares and securities and goods followed by themanagement are reasonable and adequate in relation to the size of the company and thenature of its business.

c. In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stock of shares and securities and goods by themanagement as compared to book records.

3. According to the information and explanation given to us and on the basis of recordsfurnished before us company has granted unsecured loans to one party covered in theregister maintained under section 189 of the Companies Act 2013.

a. The terms and conditions of the grant of such loan are not prejudicial to theinterest of the company.

b. According to information and explanation given to us the loan is repayable on demandand has been repaid as and when demanded. Interest has been served on a regular basis.

c. Loan has been repaid as and when demanded and hence there is no overdue amount.

4. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has complied with the provisions ofsection 185 and 186 of the Companies Act 2013 with respect to the loans given. Howeverthe company has not given any guarantees and security or made any investment undersection 185 and 186 of the Companies Act 2013.

5. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not accepted any deposits within themeaning of section 73 to 76 from public during the year. Accordingly clause 3(v) ofCompanies (Auditor's Report) Order 2016 is not applicable.

6. According to the information and explanation given to us the Company is not requiredto maintain cost records as specified under section 148 sub-section (1) of the CompaniesAct 2013. Accordingly clause 3(vi) of Companies (Auditor's Report) Order 2016 is notapplicable.

7. a. The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxCess and any other statutory dues except delays in the payment of Tax Deducted at SourceGoods and Service Tax and Service Tax. No undisputed statutory dues as stated above isoutstanding as at 31st March for more than six months from the date they becomepayable.

b. According to information and explanation given to us there are no disputedstatutory dues relating to Income Tax Sales Tax Service Tax Custom Duty Excise DutyCess Goods and Service Tax or any other statute.

8. According to the information and explanation given to us and records examined by usthe Company has not defaulted in repayment of dues to any financial institution or bank asat the Balance Sheet date.

9. According to information and explanation given to us and records examined by us thecompany has neither raised any money by way of public offers nor raised any term loanduring the year. Accordingly Clause 3(ix) of Companies (Auditor's Report) Order 2016 isnot applicable.

10. During the course of our examination of the books and records of the companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of fraud on or by the company noticed or reported by its officers or employeesduring the year nor we have been informed of such instances by the management.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided managerialremuneration in accordance with the requisite approvals mandated by the provisions of theSection 197 read with Schedule V of the Companies Act 2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.

According the clause 3(xii) of Companies (Auditor's Report) Order 2016 is notapplicable. 13. According to the information and explanation provided to us and based onour examination of the records of the Company the transaction with the related partiesare in compliance with section 177 and 188 of Companies Act 2013 where applicable and thedetails of such transactions have been disclosed in financial statements as required bythe applicable Accounting Standards.

14. According to the information and explanation provide to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the clause 3(xiv) of the Companies (Auditor's Report) Order 2016 isnot applicable. 15. According to the information and explanation provided to us and basedon our examination of the records of the Company the Company has not entered into anynon-cash transaction with directors or persons connected with him. Accordingly clause3(xv) of the Companies (Auditor Report) Order 2016 is not applicable.

16. The Company was registered as a NBFC Company under section 45-IA of the ReserveBank of India Act 1934. Reserve Bank of India vide its order dated 24thSeptember 2014 had cancelled the certificate of registration issued to the company.Subsequently the Company challenged the order of the RBI in the Appellate AuthorityMinistry of Finance. However the Appellate had upheld the order of the RBI vide its orderdated 30th November 2015. Thereafter the Company left with no option hadfiled a writ petition in the Hon'ble Delhi High Court challenging the orders of RBI andUnion of India. On hearing our submissions the Hon'ble High Court was pleased to setaside the Orders being the Order passed by RBI dated 24th September 2014 andthe Order passed by Union of India dated 30th November 2015. However theHon'ble High Court had granted the RBI liberty to grant the company a fresh hearing.Accordingly the RBI had conducted a hearing and the Company had made its submissions tothe RBI during the hearing. However the RBI has again passed an Order dated 28thSeptember 2016 cancelling the Certificate of Registration of NBFC License of the Company.On receipt of the Order the Company has again approached the Appellate AuthorityMinistry of Finance and the matter is pending before the said forum for disposal.

  

For A. R. SODHA & Co.

Chartered Accountant

FRN 110324W

A. R. Sodha

Partner

M. No 31878

Place: Mumbai

Date: 30th May 2018

ANNEXURE B TO AUDITORS'S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ComfortIntech Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For A.R. Sodha & Co.

Chartered Accountants

FRN 110324W

A.R. Sodha

Partner

M No. 31878

Place: Mumbai

Date: 30th May 2018